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After Harried Sofa-Cushion Search, Dell Outbids HP for 3Par

Published on August 26, 2010by John Paczkowski

Looks like Dell has managed to fend off Hewlett-Packard in the battle for 3Par–for the time being.

This morning Dell (DELL) raised its bid for the data-storage vendor to $1.6 billion, topping the one Hewlett-Packard’s (HPQ) announced on Monday. Dell’s sweetened offer of $24.30 per share is 30 cents a share higher than HP’s and $6.30 a share higher than its first offer of $18 per share, or $1.15 billion. It’s also a 152 percent premium over 3Par’s (PAR) closing price of $9.65 the day before Dell’s offer became public.

In a statement, Dell said that the data-storage provider has accepted its latest offer and the revised deal is expected to close before year end.

Assuming HP doesn’t circle back with another offer. Ultimately, Dell’s latest bid is only 30 cents a share higher than HP’s. Given the cash on HP’s balance sheets–some $14.7 billion–a counter is certainly possible.